Betsy Ross owns 978 shares in the Hanson Fabrics Company. There are 16 directors to be elected. There are 42,000 shares outstanding. The firm has adopted cumulative voting.

Betsy Ross owns 978 shares in the Hanson Fabrics Company. There are 16 directors to be elected. There are 42,000 shares outstanding. The firm has adopted cumulative voting.

a.	How many total votes can be cast? (Do not round intermediate calculations and round your answer to the nearest whole number.)

Total votes

b.	How many votes does Betsy control? (Do not round intermediate calculations and round your answer to the nearest whole number.)

Votes

c.	What percentage of the total votes does she control? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Percentage of votes

%

 
Explanation:

a.

Total votes	= Number of shares outstanding × Number of directors to be elected
	= 42,000 × 16
	= 672,000 votes

b.

Shareholder votes	= Number of shares owned × Number of directors to be elected
	= 978 × 16
	= 15,648 votes

c.

Percentage of votes controlled by shareholder	= Shareholder votes / Total votes
	= 15,648 / 672,000
	= .0233, or 2.33%